Associates of Organized Crime Enterprise, Others Indicted. Indictments in Five States: California, Georgia, New Mexico, New York, and Ohio

WASHINGTON—Seventy-three defendants, including a number of alleged members and associates of an Armenian-American organized crime enterprise, were charged in indictments unsealed today in five judicial districts with various health care fraud-related crimes involving more than $163 million in fraudulent billing, announced Acting Deputy Attorney General Gary G. Grindler, FBI Assistant Director of the Criminal Investigative Division Kevin Perkins, and Health and Human Services Inspector General Daniel R. Levinson.

In this national, multi-agency investigation, 52 were arrested today by FBI agents in the largest Medicare fraud scheme ever perpetrated by a single criminal enterprise and charged by the Department of Justice.

The defendants are charged with engaging in numerous fraud activities, including highly-organized, multi-million-dollar schemes to defraud Medicare and insurance companies by submitting fraudulent bills for medically unnecessary treatments or treatments that were never performed. According to the indictments, the defendants allegedly stole the identities of doctors and thousands of Medicare beneficiaries and operated at least 118 different phony clinics in 25 states for the purposes of submitting Medicare reimbursements.

“The emergence of international organized crime in domestic health care fraud schemes signals a dangerous expansion that poses a serious threat to consumers as these syndicates are willing to exploit almost any program, business or individual to earn an illegal profit,” said Acting Deputy Attorney General Gary G. Grinder. “The Department of Justice is confronting this evolving threat here and abroad through a number of initiatives including a strengthened Attorney General’s Organized Crime Council and the creation of the International Organized Crime Intelligence and Operations Center (IOC-2) to ensure that we are focused and coordinated in our efforts to combat international organized crime.”

“The international organized crime enterprise known as the Mirzoyan-Terdjanian, fleeced the health care system through a wide-range of money making criminal fraud schemes. The members and associates located throughout the United States and in Armenia, perpetrated a large-scale, nationwide Medicare scam that fraudulently billed Medicare for more than $100 million of unnecessary medical treatments using a series of phantom clinics,” said Kevin Perkins, FBI Assistant Director of the Criminal Investigative Division. “We want to restore the confidence in the nation’s health care system and assure practitioners we will not stand by and let their identities be used for criminal gain.”

“Today, special agents of the Office of Inspector General working in tight coordination with our federal law enforcement partners made 52 arrests across the nation—from New York to Los Angeles—on charges including Medicare fraud and medical identity theft totaling more than $163 million,” said Daniel R. Levinson, Inspector General of the Department of Health and Human Services. “Criminals stealing from Medicare needn’t look over their shoulders to know that we are in hot pursuit.”

Forty-four defendants were charged in two indictments unsealed today in the Southern District of New York with racketeering conspiracy and conspiracy to commit the following acts: health care fraud, bank fraud, money laundering, fraud in connection with identity theft, credit card fraud, and immigration fraud. In addition, seven defendants were charged in the District of New Mexico with health care fraud, mail fraud, wire fraud, money laundering conspiracy, money laundering, forfeiture, and aggravated identity theft. Six defendants were charged in the Southern District of Georgia with health care fraud, conspiracy to commit health care fraud, money laundering conspiracy, and aggravated identity theft. Six defendants were charged in the Northern District of Ohio with health care fraud, mail fraud, conspiracy to commit mail fraud, wire fraud, conspiracy to commit money laundering, and aggravated identity theft. Lastly, 10 defendants were charged in two indictments in the Central District of California with conspiracy to commit bank fraud, bank fraud, money laundering, conspiracy to launder monetary instruments, criminal forfeiture, aggravated identity theft, aiding and abetting, and causing an act to be done.

According to the charges filed in U.S. District Court in the Southern District of New York, the Mirzoyan-Terdjanian Organization is named for its principal leaders, Davit Mirzoyan and Robert Terdjanian. The leadership of the organization is based in Los Angeles and New York, and its operations extend throughout the United States and internationally. Among the defendants charged with racketeering is Armen Kazarian, who is alleged to be a “Vor,” a term translated as “Thief-in-Law” and refers to a member of a select group of high-level criminals from Russia and the countries that has been part of the former Soviet Union, including Armenia. This is the first time a Vor has ever been charged for a racketeering offense, and the first time since 1996 that a known Vor has been arrested on any federal charge.

The racketeering charges carry a maximum penalty of life in prison and a $250,000 fine. The health care fraud and conspiracy to commit health care fraud charges each carry a maximum penalty of 10 years in prison and a $250,000 fine. The conspiracy to commit bank fraud charges each carry a maximum penalty of 30 years in prison and a fine of $1 million. The conspiracy to commit money laundering charges each carry a maximum penalty of 25 years in prison and a $500,000 fine. The conspiracy to commit money laundering charges each carry maximum penalties of 20 years in prison and a $500,000 fine. The conspiracy to commit fraud in connection with identity theft charges carry a maximum penalty of five years in prison and a $250,000 fine. The aggravated identity theft charges each carry a required two-year consecutive prison sentence to any other sentence imposed, the conspiracy to commit credit card fraud charges carry a maximum penalty of 10 years in prison and a $250,000 fine. The conspiracy to commit immigration fraud charges carry a maximum penalty of five years in prison and a $250,000 fine.

The charges announced today are merely allegations, and defendants are presumed innocent unless proven guilty in a court of law.

The defendants charged in each district will be prosecuted by Assistant U.S. Attorneys from each of the respective districts in which the cases were charged. The cases were investigated by special agents from the FBI’s Los Angeles and New York field offices.

Today’s arrests are an example of the FBI’s ability to conduct cross-program, multi-divisional investigations targeting a national level threat. In recent years, the department has undertaken a series of steps to modernize its organized crime program and enable federal law enforcement to take a unified approach to combating international organized crime. The Attorney General’s Organized Crime Council brings together the leadership of the FBI and eight other federal law enforcement agencies or offices with the department’s prosecutors, focusing high-level attention on these issues.

The IOC-2 provides support in the form of information and intelligence to the member agencies that enhance efforts to identify, penetrate and dismantle the most dangerous organized crime groups through investigations and prosecutions. The creation of the International Organized Crime Targeting Committee and the Top International Criminal Organizations Target (TICOT) List, directs investigators and prosecutors to concentrate their limited resources on those international organized crime groups that pose the greatest threat to the United States. The department’s Criminal Division, through the Health Care Fraud Unit, Organized Crime and Racketeering Section, and the Asset Forfeiture and Money Laundering Section, has created new training programs to educate investigators and prosecutors on the intricacies of international organized crime and financial investigations.

WASHINGTON—The Justice Department announced today that the evidence does not reveal a violation of the applicable federal criminal civil rights statute or warrant further federal criminal investigation in the death of Imam Luqman Ameen Abdullah, a Detroit Muslim cleric, who was shot during an Oct. 28, 2009, arrest by FBI agents in Dearborn, Mich.

The department conducted a complete, thorough, and independent review of this matter. The review included examining all documents witness accounts, forensic evidence and reports, and operational plans and procedures that were generated by an FBI Inspection Division inquiry, a Dearborn Police Department investigation, and the Wayne County Medical Examiner’s office. Additionally, a senior Civil Rights Division prosecutor consulted with Dearborn detectives and forensic experts and interviewed critical witnesses, including the FBI agents who shot Imam Abdullah and who voluntarily agreed to be interviewed.

To establish a violation of 18 U.S.C., Section 242, the applicable federal statute, the government must prove, beyond a reasonable doubt, that an official, acting under color of law, willfully deprived a person of a right protected by the Constitution or laws of the United States. In prosecuting a Section 242 case, the government must show that the official used unnecessary and unreasonable force that was not warranted to achieve a legitimate law enforcement purpose. The government must also prove, beyond a reasonable doubt, that the official acted willfully, that is, with the specific intent to do something the law forbids.

Assistant Attorney General for Civil Rights Thomas E. Perez met in Detroit today with members of Imam Abdullah’s family and later with representatives of interested local groups. Assistant Attorney General Perez explained based on a thorough review of the evidence, federal prosecutors have determined that the evidence does not reveal a violation of Section 242.

The summary of the findings regarding the shooting incident provides detailed information and legal analysis to support the department’s conclusion. This matter is being returned to the FBI to complete its administrative inquiry of the incident.

Endorsements from the Veterans of Foreign Wars Political Action Committee have so enraged many VFW members that its elected leaders have asked the PAC to immediately rescind all endorsements for next month’s election.

The PAC operates separately from the veterans group and bases its endorsements on how lawmakers voted on issues of importance to veterans and members of the military.

But VFW members have been calling the national headquarters to complain, particularly about two races — both featuring Democratic incumbents.

In one race, Sen. Barbara Boxer of California got the PAC’s endorsement over Republican Carly Fiorina. In the other, Rep. Ron Klein of Florida got the endorsement over Republican and Iraq war veteran Allen West.

The Metro section of Wednesday’s Washington Post is topped by this story on the right hand side: “The Obama administration will not release the results of an investigation into why an illegal immigrant with two drunken-driving convictions went almost two years without a deportation hearing before a crash that killed a nun, a senior official said.”

But that story by reporter Shankar Vedantam is not on the home page at washingtonpost.com. In fact, it’s given only a tiny headline on the home page of PostLocal, {where the Metro stories are featured.}

The inquiry is complete, but Homeland Security does not plan to make the results public, according to the senior official, who spoke on condition of anonymity because he was not authorized to speak about the matter.

“It’s a document that includes law enforcement sensitivities, so it will not be made public,” the official said. He declined to discuss the nature of those sensitivities.

In response to questions about the investigation’s conclusions, DHS spokesman Matt Chandler issued an e-mailed statement that said: “The Secretary’s Office has received the review of the circumstances by which the individual was released in 2008 and are in the process of looking over the findings. Due to the ongoing criminal matter at hand, it would be inappropriate to comment further.”

Told of the government’s decision to withhold the investigation’s results, Corey Stewart, chairman of the Prince William Board of County Supervisors, expressed outrage…

Stewart blamed ICE for the accident.

“They didn’t deport this [expletive] that killed a nun, and he had been convicted of DUI twice,” Stewart said. “It is their policy to not deport people unless they are convicted of serious crimes. They are going to say this is some bureaucratic snafu, but they are only deporting people who commit a violent act, and since they don’t consider DUI a violent act, they are releasing them.”

Carlos Martinelly-Montano, 23, who came into the country illegally from Bolivia as a child, is accused of killing Sister Denise Mosier and critically injuring two other Benedictine nuns who were driving north from Richmond on August 1 just a few miles from the Benedictine monastery in Bristow, Virginia.

NEW YORK — Fifty state attorneys general announced a coordinated probe Wednesday into improper foreclosures performed by the nation’s largest loan servicers, but stopped short of calling for a freeze on all foreclosures.

The group will work to put an immediate stop to improper mortgage foreclosure practices, as well as review past and present practices by loan servicers and potential remedies.

The inquiry will be led by Iowa Attorney General Tom Miller.

“This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess, and we plan to work together as thoroughly and expeditiously as possible,” said Miller.

Alabama was not included in the original coalition of 49 states, but the office of attorney general Troy King indicated Tuesday afternoon that his state would end its holdout and join the investigation.

State attorneys general have led efforts to compel loan servicers to institute foreclosure moratoriums after it was discovered that some employees may have signed off on documents without a proper review, a process known as “robo-signing.”

Freezing foreclosures? What does that mean?

Coupled with allegations of improper notarization of documents, “robo-signing” has left lenders exposed to legal challenges from homeowners who say their loans were improperly handled.

“This is not a gray area. Either our legal requirements for filing foreclosures were followed or they weren’t, and we will hold the companies accountable for their systematic violations,” New Jersey Attorney General Paula Dow said in a statement.

Loan servicers have responded with a range of measures designed to ensure foreclosures are legal. Some have announced a review of pending cases, while Bank of America (BAC, Fortune 500) has halted foreclosure sales in all 50 states.

On Tuesday, Ally Financial, one of the largest holders of foreclosed loans, said it has hired outside accounting and legal firms to examine its foreclosure procedures in all 50 states.

A total of 1.8 million loans are in foreclosure in 23 states where judges are required to sign off on foreclosure. Another 1.3 million are pending elsewhere in the nation, according to a Morgan Stanley analyst’s report.

On Wednesday, JPMorgan Chase said it was in the process of reviewing 115,000 loan files. But CEO Jamie Dimon said the underlying foreclosure decisions were justified.

“We don’t think there are cases where people were evicted out of homes when they shouldn’t have been,” Dimon said during the company’s earnings call with investors.

Some Democratic congressional leaders, including Senate Majority Leader Harry Reid of Nevada, have voiced support for a foreclosure moratorium while an investigation is conducted.

But those Democrats have found themselves at odds with top members of the Obama administration, including Treasury Secretary Tim Geithner, who argue that a nationwide freeze would undermine an already fragile housing market and prolong vacancies

50 States Launch Bank Foreclosure Probes Attorneys general in every state and the nation’s capital are launching a joint investigation into claims mortgage firms broke laws by signing off on documents foreclosing on hundreds of thousands of homes.

~Wouldn’t she have to actually ‘see’ him to do that? Inquiring minds & all that…Oh but she DID attend his inaugural AS an illegal immigrant! Her nephew is not obligated ‘to’ her BUT we are?! GOD is?! The very same judge that ruled her in violation of ‘overstaying’ is the same judge who ruled she can stay. Want to hear the reason? JUST watch this video ~JP

For years she lived illegally in Boston public housing. She’s unemployed, receiving nearly $700 a month in disability, and for nearly ten years was in this country illegally. Despite what’s she’s been given, Zeituni Onyango said flatly that she owes this country nothing in return. “But, it’s given you so much?” Elias asked. “So? It’s a free country under God,” was her terse response.

When asked why the taxpayers should be burdened with her needs, the feisty Zeituni said, “This country is owned by almighty God. You people who preach Jesus Christ almighty God and the rest of it, you are here to help people, help the poor, help other countries and help women. That’s what the United States is supposed to do? And you have to give me my right light, every person’s right.”

~ I mean OMG the Queen of Entitlement! This is a bad family trait! Harsh & crass woman like her nephew.~JP

From WBZTV (Boston) Jonathan Elias reports:

This may be the case in Africa, but in the United States the President’s Aunt Zeituni Onyango hasn’t been revered, but reviled by many.

That’s the problem; she hasn’t been carrying her own cross. The taxpayers have, and many are angry that she has been able to live on public assistance for so long, while others who paid into the system are denied those same benefits.

The fact is, Zeituni Onyango now has the legal right to stay and she continues living in Boston public housing, and getting her monthly disability checks.

Donna Brazile, former Gore campaign manager and Democrat pundit, claims Communist China’s economic system a success and doing better than that of the United States. Donna Brazile was speaking at the Bakersfield Business Conference.

~ and the Democratic National Committee’s Vice Chair of Voter Registration & a liberal professor you do not want teaching your children.